Maximize Employer 401(k) Match Calculator [2026]

What Is the Mathematical Formula to Calculate an Employer’s 401(K) Match?

For Tiered Matching System:

• Layer 1 Match = (Salary × Match Limit 1) × Match Rate 1
• Layer 2 Match = (Salary × (Match Limit 2 - Match Limit 1)) × Match Rate 2
• Total Employer Match = Layer 1 Match + Layer 2 Match

Optimal Contribution Calculation:

• Minimum Recommended = Salary × Maximum Match Eligible Percentage
• Maximum Allowed = Lesser of (Annual IRS Limit, Salary × 100%)

2026 Contribution Limits

• Under 50: $24,500 maximum annual contribution
• Age 50+: $32,500 maximum (includes $8,000 catch-up contribution)
• Age 60-63: $35,750 maximum (includes $11,250 catch-up contribution)
• Total contributions (employee + employer) cannot exceed $72,000 (or $80,000 for age 50-59 and 64+, $83,250 for age 60-63)

References

Official Government Sources:

• IRS 401(k) Contribution Limits (IRS.gov)
• Department of Labor - 401(k) Plans (DOL.gov)
• SEC Investor.gov - 401(k) Plans
• Social Security Administration - Retirement Planning (SSA.gov)

Additional Financial Planning Resources:

• Consumer Financial Protection Bureau - Retirement Tools
• MyMoney.gov - Retirement Planning